US lawmakers unveil draft bill to overhaul crypto tax code

U.S. House Representatives Max Miller and Steven Horsford released a draft bill on March 27 aimed at overhauling cryptocurrency tax laws, Cointelegraph reported. The proposal, titled the Digital Asset PARITY Act, specifies that stablecoins would not be subject to capital gains tax if their value does not fluctuate by more than 1% of a dollar, or $0.01, from their acquisition cost. Additionally, transaction costs for acquiring or moving regulated, dollar-pegged stablecoins would not be included in an investor's cost basis calculation. The bill also introduces a de minimis exemption for stablecoin transactions under $200, which would not require tax payments or reporting. An annual total exemption limit has not yet been determined. The draft has not yet been formally introduced in Congress, with discussions planned among lawmakers, stakeholders, and the crypto industry.